Stella-Jones Inc. announced that its wholly-owned subsidiary, McFarland Cascade Holdings, Inc., has completed the acquisition of the shares of Lufkin Creosoting Co., Inc.
Lufkin Creosoting produces treated poles and timbers at its wood treating facility in Lufkin, Texas. Its consolidated sales for the year ended December 31, 2015 reached approximately $34.2 million.
The purchase price was $37.5 million, including $5 million of working capital, and is subject to post-closing adjustments. Stella-Jones has financed the transaction through a combination of debt financing and a vendor note.
"The acquisition of Lufkin Creosoting further improves Stella-Jones' ability to provide the North American utility and industrial markets with high-quality treated wood products. This transaction will expand our market reach and will be immediately accretive to earnings," said Brian McManus, President and CEO of Stella-Jones.
Stella-Jones Inc. is a leading producer and marketer of pressure treated wood products.
